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AIMS AMP Capital Industrial REITs: Buy ups!

Thursday, May 26, 2011

It is widely acknowledged even amongst private investors that Singapore's industrial real estate provides probably the highest yields compared to all other classes of real estate. Personally, I know of some really rich people who own one or a few industrial properties in Singapore. As I am not in the same league, I seek exposure through investments in industrial properties S-REITs.

I would draw your attention to a couple of past blog posts and if you have missed reading these, you might want to check them out:
1. Higher rents to benefit industrial properties S-REITs
(7 April 2011).
2. Industrial rent forecasts strongest for Singapore.
(17 April 2011).

Buying units of REITs which are trading below NAV is still something I do with the exception of Cache Logistics Trust which I bought at a smallish premium to NAV. I usually go for industrial properties S-REITs offering higher distribution yields, preferably closer to 10% per annum (adding to my investment in AIMS AMP Capital Industrial REIT when its price hit 19.5c and 20c in recent past and buying heavily into Sabana REIT in the last two weeks as its price hit a low of 90c).

Currently, I have investments in the following industrial properties S-REITs:

1. AIMS AMP Capital Industrial REIT
2. Sabana REIT
3. Cache Logistics Trust
4. Cambridge Industrial Trust

Of the four, I am only interested in adding to Sabana REIT for reasons I discussed in an earlier blog post. Please read it here. I also said that I am waiting for an opportunity to partially divest my stake in AIMS AMP Capital Industrial REIT and to move the funds into Sabana REIT. The opportunity should take the form of a rebound and when resistance is tested.

Remember I blogged about my disappointment in Cambridge Industrial Trust in an earlier blog post? It did not mean that I would dump my units at whatever price available at that point in time. I meant that I would divest at a price which is to my advantage. There is a time to buy and a time to sell. We can only hope that we get them right.

I was somewhat saddened when some readers told me that they sold away their units in the Trust after reading my blog post and the counter was still trading CD at the time. Read blog post here.


Now, with AIMS AMP Capital Industrial REIT, we are seeing consistent buying ups for two sessions now. Today, a dragonfly doji was formed with 4,851 lots bought up at 21.5c and only 43 lots sold down at 21c.

Could the reverse head and shoulders I blogged about on 18 May be valid? Read blog post here. If valid, it would provide a chance for me to partially divest my stake in the REIT.

16 comments:

Chu Yeow said...

I have divested my stake in AA-REIT today, looking to park the money somewhere else now :)

AK71 said...

Hi Chu Yeow,

Divesting your investment in AA-REIT probably means you found a better investment opportunity? Please share. Thank you. ;)

Chu Yeow said...

Actually, I just want to divest AA-REIT since I don't see an uptrend (other than today's indicator). There're better buys out there but I haven't made my mind whether to keep the cash or to re-invest. If I do, I feel more comfortable investing in First REIT or maybe dipping my hands into Sabana REIT.

AK71 said...

Hi Chu Yeow,

As you probably know, I am thinking of moving some of my funds from AA-REIT to Sabana REIT. ;)

First REIT is rock solid. I like it very much. Could add to my long position too.

Good luck. :)

Anonymous said...

What do you mean by Buy-up and sell down? How do you see it?
Buyer must have seller so how we know if people want to buy or sell.

Thanks.

Karen

AK71 said...

Hi Karen,

Check out the "Trade Summary" function and you would be able to see what I am talking about. Are there more people buying up the sell queue or are there more people selling down to the buy queue? ;)

Chu Yeow said...

@Karen My understanding is like this:

Consider AA-REIT with 0.21 bid/buy price, and 0.215 ask/sell price.

When a trade happens at 0.215, it's a "buy up" because someone was willing to pay "up" to the ask price.

When a trade happens at 0.21, it's a "sell down".

AK71 said...

Hi Chu Yeow,

Thanks for helping out. :)

Anonymous said...

Hi AK, like u, I also have a significant portfolio in industrial reits Sabana, AIMS and Mapletree Industrial. Enjoys your read and analysis! Keep them flowing! =)

AK71 said...

Hi Anonymous,

It is always a happy thing to meet a like minded investor. :)

To make it more memorable, could you include your name or initials in future comments? Thanks. ;)

Anonymous said...

Hey AK,
Just to ask, why the decision/want to divest your stake in AIMSAMP REIT? At one point you were its priest I remember heh. Something bad happened?
Thanks,
~K

AK71 said...

Hi K,

I doubt I was the priest of anything except in AD&D when I played the role of a cleric. ;)

There is nothing bad or wrong with AIMS AMP Capital Industrial REIT. However, I would like to do a partial divestment as part of a portfolio rebalancing exercise with the introduction of Sabana REIT. Of course, it should be done at the right price.

I shared my thoughts in the following blog post and you might want to take a look if you missed it:

AIMS AMP Capital Industrial REIT and Sabana REIT.

Happy reading. :)

Anonymous said...

I enjoy your posts and others ... i have done a few hundred lots of sabana ... thinking of doing a couple of hundreds on this ...

i like your passive income story ... important thing is to get your salary up ... that is your main business

AK71 said...

Hi Anonymous,

Glad you like my blog posts. :)

Get my salary up? I am not sure I want to continue working for money for much longer though. Thanks for the suggestion. ;)

Could you include your name or initials in future comments?

Motley said...

Okay , i will comment under the name motley.

haha i too would not want to work for others for money.

read your Cache idea ... have been pondering on this.

i think i want to develop internet assets ...(like again) ... i folded my dot com company the last round.

AK71 said...

Hi Motley,

Thanks for coming by again.

Cache Logistics Trust? I like this too. :)

The internet has made many rich beyond believe and it remains a sea of opportunities. I discovered its potential late in life but I believe it is not too late. ;)

Sorry to hear about your dot com business folding. :(

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